Defining what makes a niche good is the easy part.
A good niche is:
* one you are passionate about,
* know something about,
* have a sustaining interest in,
* can make a meaningful contribution to, and
* will make you good money.
Making sure you've found one is the hard part.
Why? Because it takes time to thoroughly research your niche to make sure it's a good niche for you.
As a business coach for women starting businesses, I know how important it is for my clients to find a good niche. Yet, so many women skip over this vitally important part in their hurry to make money. Effectively shooting their new business start-up in the foot.
I know women want to get their business up and going as soon as possible. I know they're often under pressure to do so from their husbands or partners. I know that many start up their business on a shoestring, meaning every month spent in start up is a month without income.
To avoid shooting your new business start-up in the foot, know the answers to these four things and you'll be off on the right foot toward determining if you've found a good niche:
* Are you called to serve your niche?
First things first, do you feel a calling to do what you want to do? "I don't feel people get called to do something that doesn't have a purpose," says Samantha Hartley of Enlightened Marketing.
* Is there low competition?
There are a number of ways to determine if there is much competition in your field. One way is to go to the Widow website. Type in your keyword phrases and click "search." A non-duplicated list of businesses related to your keyword phrase is what you'll see. Look around. Take notes. Who else is already doing what you want to do? If you find that there are a number of businesses competing, take heart. Look in the left-hand column to find related cluster searches that are more niche specific. Clusters for niche markets with less competition can be found by drilling down.
Next, head over to GTrends at the Wordtracker website. Type your revised niche keyword list and click "hit me." This tool will generate a list of key phrases that people search for and give you an estimate of the daily search volume from all of the search engines. Most important, click on the bar graph icon to the right and see the trends for your niche phrases.
* Will your business have strategic alliance strength?
Talk with people in peripheral businesses that would be most likely to refer business to you to determine strategic alliance strength. Samantha Hartley recommends going directly to them and asking, "I'm considering starting this business - what do you think? Would this be something that would add a substantive value to the customers or clients you currently service?" Closely listen to their feedback.
* Will it pay the bills?
What do you want your business to be earning in one, two, and five years from now. What will your operating costs be? What hardware and software do you need to buy? What will be taken out in taxes?
How much product or service will you need to produce to pay your bills.
How much will it cost to produce your product? How many hours will you need to work? How much will you be able to charge in your market?
Running the numbers now can assure your business has the income you want, in the long run. If you do the numbers and see that you'll come out the first year making only $25,000, that might be okay if, when you project out to three years, you see that you will make $250,000.
One of the toughest things for a new business owner to do is take the time to determine if you've found a good niche. A niche you are passionate about, know something about, and have a sustaining interest in. But that's not enough. A good niche must also be able to make you good money. That's why it's so important that you don't skip the niche research step. Do these four things and you'll be off to a good start toward determining if you've found a good niche.
Find A Business Owner
The Beginning
I've now owned or been partners in 4 different businesses. For the past few years I've been lucky enough (not sure if lucky is the right word) not too be working for someone else at the same time. My first businesses were bands, specifically rock cover bands, (playing other peoples music) in small clubs, bars and parties. I hate to call these businesses because I mainly did it for fun and the love of music but we did make money. Most of that money went into buying new instruments and PA equipment so it wasn't the financial freedom aspect of a real business.
My other businesses have been the "financial freedom" type businesses. The first was a band rehearsal studio called "The Pick Up Joint". The idea, which was borrowed, was to provide rooms (studios) for bands to play in without the worry of the police and upset neighbors. We rented a big warehouse, worked days at our "real" jobs and spent nights and weekends busting our butts building studios, and getting the place ready and sound proof. Luckily I was young at the time, I went into that project 185 pounds and lost 20 pounds and nearly collapsed from exhaustion.
But we did it, we opened and soon we had plenty of business. WOW! There is nothing like being your own boss! Time came when the business needed more, we either had to grow or sell. Working a full time job and working nights and weekends was getting too much. When push came to shove we decided to sell. The aspect of giving the security of a 9-5 job was difficult to leave and I had just bought a new house, so I felt I could not take the chance. I always thought I made the wrong move.
New Focus
Since the closing of "The Pick Up Joint" I concentrated on my career, Information Technology. I went back to school, got new positions, and worked my way to a nice salary; I also got married as well! Things went well for a while but then the bottom fell out around 2001. My company closed their Eastern headquarters, and I was left without a job collecting unemployment. I was able to find a job, for 30,000 less and a 3 hour commute, I decided then and there I would not work for someone else again.
The Move
An opportunity arrived and I decided to start a restaurant with my brother-in-law and at the same time help my wife run a small newspaper that we purchased. We dropped everything, sold our house and invested all our equity and some borrowed money into two new businesses. Two dreams put into place with one move, I got to be my own boss, and I got to move to the beach!!
It hasn't been easy, living at the beach is expensive, housing costs are crazy, and starting two new businesses is daunting, to say the least. It's been almost three years now and it's been harder than I expected, there have been times when I've had to work for someone to make ends meet. I applied for, was offered and almost took a full time position in my old field, this for $20,000 less than my last position. I had a bad feeling about giving up a second time on my businesses so I declined the offer and decided that I would spend all my energy on my two current businesses and to see what other business I could get into without deny time to the other businesses and my family and self.
What to do
The problem: I only have a few hours each day to devote to something new. I don't have a lot of money to spend starting a new business. That's two huge problems to have. I had recently found out more about affiliate programs. An email from another newspaper owner told us about an offer to use unused (not sold) newspaper ad space to become an affiliate for a company. Meaning when we sell one of their products we get a commission. Normally we have some free space so I decided to give it a shot. We put in an ad and guess what? We started getting checks for the ad space, WOW! That got the gears in my head spinning, what other businesses could I become affiliated with.
I searched the Internet and what did I find? Junk, lots of it, scams, lies, cheaters, you name it. There's one thing I will not sell and that is my integrity, I believe in karma. I searched, researched a hundreds of Make It Rich on the Internet programs, Drop Shipping programs, affiliate programs, Work from home, etc., they all sounded good but the more I researched the more trouble I found. I had all but given up hope until; I followed a link found on a user forum I belong to.
That link brought me to an Internet Marketing program that sounded much like the other ones out there in webland. Except one, I couldn't find anyone who had bad things to say about it. I searched Internet Scam sites, Web Police sites, User forums and nobody had anything bad to say about the program.
I Join In.
So, I joined. I'm now one week into my new business. How is it going so far? Well sure I've had to put out some money (startup), all new businesses need that. The nice thing is I am excited about this program. It's an opportunity to use my one strength in this world; I know how to work hard! I'm not lazy, when something needs to be done, I do it. There's a goal to be reach, I put my nose to the grindstone and reach it. Plus it gives me an opportunity to combine the resources of my other businesses to help jumpstart the new business. Free ad space and networking opportunities to help other people reach their financial goals and mine as well.
Just the beginning
This article is just the beginning, it was created as part of the steps (1 out of 30) to help my new Internet Marketing business grow. This article was meant to tell you how I got to this place, more to come as I progress through the program and grow my new business.
Both Susan L Reid & Joseph Regan are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Susan L Reid has sinced written about articles on various topics from Entrepreneurship, Finances and Hillary Clinton Rodham. Dr. Susan L. Reid helps home-based entrepreneurs figure out who their niche market is, where to find them, and how to figure out your unique selling position. Get a jump on f. Susan L Reid's top article generates over 74000 views. Bookmark Susan L Reid to your Favourites.
Joseph Regan has sinced written about articles on various topics from Advertising Guide, Internet Marketing and Marketing. Joseph (Jay) Regan is an owner/part-owner of three small businesses. He lives on the Outer Banks in North Carolina. See me at http://www.jrmakemoreathome.com.. Joseph Regan's top article generates over 2400 views. Bookmark Joseph Regan to your Favourites.
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